A typical break-even analysis assumes that
A)the total revenue curve is a straight line.
B)the demand curve faced by the firm is horizontal.
C)the average variable cost is the same at different levels of output.
D)profits will grow continually beyond the break-even point.
E)All these answers are correct.

Question

Quizplus · Accepted Answer

A typical break-even analysis assumes that the total revenue curve is a straight line; that the demand curve is horizontal; that average variable cost is the same at different levels of output; and that profits will grow continually beyond the break-even point.

A Typical Break-Even Analysis Assumes That